GBPCAD January 2026 fundamental analysisBritish Pound/Canadian DollarFX:GBPCADOneirotradeGBP/CAD Current Level: 1.84677 | 1-Month Change: +0.50% | Trend: Sideways/Uptrend (Weak) Fundamental Analysis: GBP/CAD shows weak upward pressure as both central banks are at different points in their cycles. The BoE is actively cutting rates (now at 3.75%) and expected to cut further, while the BoC holds at 2.25% with limited near-term movement expected. The 150-basis-point differential currently favors GBP, but this advantage is being eroded as the BoE cuts further and the BoC holds firm. Canada's economy is showing resilience with better-than-expected labor market data, while the UK economy is softer and requires continued rate support. Trade risks surrounding USMCA renegotiations could pressure CAD if deteriorated, providing upside to GBP/CAD. However, the fundamental advantage is modest and the pair shows weak momentum. Recent Price Action: Weak uptrend with +0.50% monthly gain. Momentum is muted, suggesting the market is not convinced of sustained direction. Verdict: HOLD – BoE rates provide near-term support for GBP, but BoC hawkish hold limits upside. Trade risks to CAD are the key variable. Wait for USMCA clarity.